Pa. Rep. Mark Painter voices support for Pottstown KOZ deal

POTTSTOWN — State Rep. Mark Painter, D-146th Dist., has waded into the debate over offering tax breaks for a new business, informing the school board Thursday night that he favors the deal.

Michael A. Lavanga, Painter’s district chief of staff, addressed the board Thursday night and said his boss supports the Keystone Opportunity Zone property tax exemption under consideration for Conshohocken-based Heritage Coach Company, which hopes to buy the former 84 Lumber truss assembly plant on Keystone Boulevard and move its hearse and limousine company there.

Pottstown Borough Council approved the tax break March 11 with a 4-3 vote and the Montgomery County Commissioners have already indicated they will follow whatever decision is made by the school board and borough council.

This leaves the proposal’s final hurdle in the hands of the school board, which is scheduled to vote on the matter at the Monday night meeting, which begins at 7:30 p.m. in the high school cafeteria.

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While the borough has estimated the proposal would cost it somewhere between $30,000 and $40,000 in tax revenues, the school district stands to lose a much larger amount of money.

Although the matter was not discussed publicly during the Thursday night meeting, Finance Committee Chairman Dennis Wausnock did report that the finance committee is recommending the board accept the proposal.

Steve Bamford, executive director of Pottstown Area Industrial Development Inc. and the borough’s chief economic development officer, has also urged the passage of the proposal

The proposal does two things.

First, it extends for another 10 years the 10-year-old Keystone Opportunity Zone which allows the property owner to forgo property taxes and certain state taxes under certain conditions, which includes capital investments and/or job creation. The extension applies only to the 10-acre property in question.

Second, this specific proposal lessens the impact somewhat with Heritage agreeing, after three years of no taxes, to begin paying an annual escalating percentage of the property tax bill until, by year ten, it is paying 100 percent.

The agreement, negotiated by Borough Manager Mark Flanders and Schools Superintendent Jeff Sparagana, also provides storage space for the school district, a need created by the closing and expected sale of Edgewood Elementary School, as well as a promise to help give Pottstown students real life experience in the business world.

“Representative Painter believes that the compromise created is a good one and will help bring businesses into Pottstown,” Lavanga said. “He believes the compromise provides incentives for Heritage to grow its business in Pottstown.”